If you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.
However, heavy equipment will not qualify for like-kind exchanges. Beginning in 2018, like-kind exchanges can only be done with real property such as a rental home. See TurboTax Help here.
Report the sale of the business asset on IRS form 4797 Sale of Business Property. When you sell the business asset for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Capital gains and losses receive preferential tax treatment.
If the asset is being reported as an asset in your self-employment activity, report that The item was sold, retired, stolen, destroyed, disposed of.... at the screen Tell Us More About This Asset.
If the asset is not being reported as an asset in your self-employment activity, the sale may be recorded as a Sale of Business Property under Other Business Situations.
In either case, you will need to report the date acquired, date sold, basis or original purchase price, depreciation taken on the property and expenses of the sale.
The purchase of the new equipment will be reported as a business asset. To record the purchase, you will need to report a description of the property, the date of purchase and the purchase price. TurboTax will ask questions to allow you to determine the kind of depreciation that the equipment will qualify for.
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